A record contract decides who owns your music, how you get paid, and for how long — so reading it carefully is not optional. Start with the term length and the number of albums or options required. An open-ended deal or too many option periods can lock your catalog up for a decade while you wait for permission to move.
Royalty rates look generous on paper but read the deductions. Labels often calculate royalties after packaging fees, reserves for returns, and recoupable advances. A 15% royalty on a major-label accounting formula can pay far less than it sounds. Learn what counts as recoupable before you celebrate the advance. Video budgets, tour support, and marketing spend often come out of your pocket first, which means the label gets paid back long before you see a royalty check.
The Clauses That Make or Break You
Ownership is the big one. In a traditional deal the label owns your masters; in a license or distribution deal you keep them. Check creative approval rights, audit rights so you can verify your statements, and any clauses covering name, image, and likeness. Watch for 360 provisions that take a cut of touring, merch, and endorsements.
Never sign without an experienced entertainment lawyer reviewing the deal — not a general lawyer, a music lawyer. Walk away from pressure tactics like exploding offers or verbal promises that are not in the contract. If it is not written down, it does not exist. Ask specifically about re-recording restrictions and sunset clauses on 360 income, because both can follow you after the deal ends. Your leverage is highest before you sign, so use it.
About the Author – Ruben Burgos: Ruben Burgos brings over 25 years of music expertise and more than 15 years of model guidance to the table. He is the indie major pinnacle to retaining credits for musicians and helping them navigate this wicked industry without the fuckery.